Other things the same, when the interest rate falls, people would want to lend
A)less, making the supply of loanable funds increase.
B)more, making the supply of loanable funds decrease.
C)less, making the quantity of loanable funds supplied decrease.
D)more, making the quantity of loanable funds supplied increase.

Question

Quizplus · Accepted Answer

When the interest rate falls, the return on lending money decreases, making it less attractive for people to lend money. This leads to a decrease in the quantity of loanable funds supplied, as lenders are less willing to supply funds at the lower interest rate.

Other Things the Same, When the Interest Rate Falls, People